Shell to scale back U.S. upstream business, split up downstream units

Shell announced today it would cut upstream spending in the U.S. by 20% in 2014 and split up parts of its downstream portfolio. Like several other oil majors, Shell has experienced difficulty in reaping profits from its U.S. shale operations — CEO Ben van Beurden told reporters some of his company’s exploration bets “have simply not worked out” and that Shell would exit the Eagle Ford shale.

In a company press release, Shell said its refining and fuels marketing units had shown “weaker and more volatile delivery” than its chemicals, lubricants and biofuels businesses. It is planning to break up certain parts of the downstream portfolio into separate units and sell off some non-strategic assets.

Shell announced earlier this year it would seek to unload some $15 billion in global assets. Assets sales announced so far this year total $4.5 billion.